Thursday, 20 June 2013

FCX - snaps through support

With the main equity market getting somewhat smashed for the second consecutive day, Freeport McMoran Copper & Gold (FCX) declined a very significant 5% to settle @ $27.72. Near term trend looks dire, and there is no real support until the $25s.

FCX, daily


Suffice to say, after some weeks holding the low $29s, with the main equity market falling <sp'1598, FCX is broadly falling as expected.

There is simply no support for another 7-10% or so.

*Something to keep in mind is the price action of Copper

Copper, monthly'2, - fib levels

It would appear Copper is about to lose the $3 level, and obvious target would be the low $2s. If that is the case, then FCX is in real danger of flashing to the low 20s..perhaps even 15. Although the latter looks very difficult, unless the main market breaks <sp'1500, which I do not expect.

What is clear, FCX remains one of the best miners in the world, and is now also involved in the Oil/Gas sector. Long term prospects look superb, but both the near and mid term price charts look rather dire indeed.